KUALA LUMPUR: Velesto Energy Bhd's net profit surged 270 per cent to RM63 million in the second quarter ended June 30 2024, on the back of a 41 per cent revenue growth to RM393 million.
In the first six months of the year, Velesto's net profit more than doubled to RM110 million on a 29 per cent revenue jump to RM732 million
The company declared an interim dividend of 0.25 sen per share amounting to RM20.5 million, payable on Nov 28.
Velesto president Megat Zariman Abdul Rahim said the solid quarter was backed by higher earnings due to higher utilisation at 98 per cent and higher average daily charter rate at US$115,000 per day during the quarter.
"Our operational performance reached 99 per cent uptime with zero Lost Time Injuries. Our progress on the iRDC project within the Integrated Services segment also contributed significantly during this period, demonstrating our commitment to excellence and the trust our clients place in us."
Velesto said utilisation is expected to be lower in 2H2024, due to three of its rigs namely Naga 2, Naga 5 and Naga 6 will be conducting their five-yearly mandatory special periodical survey.
Still, it expects its utilisation to remain high in 2025 as Naga 2, Naga 4 and Naga 6 have been contracted up to 1Q 2026 and Naga 8 up to 4Q2025.
Velesto said the oil and gas global outlook fundamentals remain strong and oil markets remain balanced.
Global utilisation of jack-up rigs continues to be strong as 93 per cent of marketed rigs are currently contracted, it added.
The group's remaining order book stood at RM1.3 billion as at July this year.